Lowe's Companies (NYSE:LOW) Has Gifted Shareholders With A Fantastic 170% Total Return On Their Investment
NYSE:LOW) share price has soared 146% in the last half decade. Most would be very happy with that. Also pleasing for shareholders was the 26% gain in the last three months. This could be related to the recent financial results, released recently – you can catch up on the most recent data by reading our company report.” data-reactid=”28″>The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. For example, the Lowe’s Companies, Inc. (NYSE:LOW) share price has soared 146% in the last half decade. Most would be very happy with that. Also pleasing for shareholders was the 26% gain in the last three months. This could be related to the recent financial results, released recently – you can catch up on the most recent data by reading our company report.
Check out our latest analysis for Lowe’s Companies ” data-reactid=”29″> Check out our latest analysis for Lowe’s Companies
To quote Buffett, ‘Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…’ By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During five years of share price growth, Lowe’s Companies achieved compound earnings per share (EPS) growth of 21% per year. That makes the EPS growth particularly close to the yearly share price growth of 20%. That suggests that the market sentiment around the company hasn’t changed much over that time. Indeed, it would appear the share price is reacting to the EPS.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
historic growth trends, available here..” data-reactid=”49″>We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
What About Dividends?
A Different Perspective
3 warning signs for Lowe’s Companies you should be aware of.” data-reactid=”53″>It’s good to see that Lowe’s Companies has rewarded shareholders with a total shareholder return of 53% in the last twelve months. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 22% per year), it would seem that the stock’s performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We’ve spotted 3 warning signs for Lowe’s Companies you should be aware of.
list of growing companies that insiders are buying.” data-reactid=”54″>There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”60″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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